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Financial results presentation4812DENTSU SOKEN INC.Information and Communications, Services and Others

Presentation Materials for the First Quarter Financial Results Briefing for the Fiscal Year Ending December 2026

In the first quarter of the fiscal year ending December 2026, net sales increased 8.9% year on year and operating profit increased 14.0%. Higher sales and profits in the Financial, Business and Communication IT segments, together with an improvement in gross profit margin, mainly driven by contracted systems development and software products, contributed to the results, while the Manufacturing Solutions segment reported lower sales and profit.

Worth reading
45Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
14
Year-on-year change in operating income (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending December 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥43,820 million+8.9%
Operating profit¥6,588 million+14.0%
Ordinary income¥6,725 million+12.2%
Net income¥4,648 million+13.1%
Selling, general and administrative expenses¥9,306 million
Gross Profit Margin
Rate36.3%
Year-on-year change+0.5 percentage points year on year
Operating profit margin
Rate15.0%
Year-on-year change+0.6 percentage points
Results for the three months of the current quarter
Net Sales
¥43,820 million
Operating profit
¥6,588 million
Ordinary income
¥6,725 million
Profit attributable to owners of parent for the quarter
¥4,648 million
Full-year earnings forecast
Net Sales
¥182,000 million
Operating profit
¥25,500 million
Ordinary income
¥26,100 million
Profit attributable to owners of the parent
¥18,000 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing smoothly against the first-half plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impact of higher revenue¥12.8 hundred million
    DirectionIncreased
  • Effect of higher gross profit margin¥2.1 hundred million
    DirectionIncreased
  • Increase in SG&A expenses¥-6.8 hundred million
    DirectionDecreased
  • Increase in R&D expenses¥2.9 hundred million
  • Increase in personnel-related expenses¥1.6 hundred million
  • Increase in outsourcing expenses¥1.2 hundred million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Judgments and assumptions based on industry trends, customer conditions and other information available at present. Numerical assumptions: Not disclosed.
New initiatives
  • Accelerating collaboration with Dream Incubator on support for manufacturing value-chain transformation
  • Launch of an HR × AI organizational transformation program
  • Launch of minnect AI-BPR, a generative AI-powered BPR support solution for local governments
  • Provision and adoption of AI agent development support services
  • Establishment of a cross-functional consulting organization with the domestic Dentsu Group
  • Expansion of POSITIVE's digital salary payment functionality
  • Full-scale launch of VeCrea
  • Launch of Mendix offerings for the financial sector
  • Launch of D-NEXUS
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥58,114 million
    Year on year against the same period last year+19.8%
  • Order backlog¥90,634 million
    Year on year against the same period last year+33.0%
  • Number of employees (at quarter-end)4,627 people
    Year on year against the same period last year+5.4%
Segment results
  • Financial Solutions
    Net Sales¥9,101 million (YoY +9.6%)
    Operating profit¥1,408 million (YoY +27.4%)
  • Business Solutions
    Net Sales¥7,726 million (YoY +35.4%)
    Operating profit¥2,060 million (YoY +108.1%)
  • Manufacturing Solutions
    Net Sales¥15,601 million (YoY -3.5%)
    Operating profit¥1,792 million (YoY -30.3%)
  • Communication IT
    Net Sales¥11,390 million (YoY +13.1%)
    Operating profit¥1,326 million (YoY +19.2%)
Orders received and order backlog
Orders received
¥58,114 million+19.8%
Order backlog
¥90,634 million+33.0%
Number of employees
Number of Employees4,627 people
Change during the periodUp 238 year on year, or 5.4%
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales¥43,820 million (YoY +8.9%)
Operating profit¥6,588 million (YoY +14.0%)
Ordinary income¥6,725 million (YoY +12.2%)
Net income¥4,648 million (YoY +13.1%)
Gross Profit MarginRate 36.3% / Year-on-year change +0.5 percentage points year on year
Operating profit marginRate 15.0% / Year-on-year change +0.6 percentage points
Selling, general and administrative expenses¥9,306 million
Results for the three months of the current quarterNet Sales ¥43,820 million / Operating profit ¥6,588 million / Ordinary income ¥6,725 million / Profit attributable to owners of parent for the quarter ¥4,648 million
Full-year earnings forecastNet Sales ¥182,000 million / Operating profit ¥25,500 million / Ordinary income ¥26,100 million / Profit attributable to owners of the parent ¥18,000 million
Self-assessment against the planProgressing smoothly against the first-half plan
Segment resultsSegment Financial Solutions / Net Sales ¥9,101 million (YoY +9.6%) / Operating profit ¥1,408 million (YoY +27.4%), Segment Business Solutions / Net Sales ¥7,726 million (YoY +35.4%) / Operating profit ¥2,060 million (YoY +108.1%), Segment Manufacturing Solutions / Net Sales ¥15,601 million (YoY -3.5%) / Operating profit ¥1,792 million (YoY -30.3%), Segment Communication IT / Net Sales ¥11,390 million (YoY +13.1%) / Operating profit ¥1,326 million (YoY +19.2%)
Breakdown of Factors Affecting the ChangeFactors Impact of higher revenue / Amount ¥12.8 hundred million / Direction Increased, Factors Effect of higher gross profit margin / Amount ¥2.1 hundred million / Direction Increased, Factors Increase in SG&A expenses / Amount ¥-6.8 hundred million / Direction Decreased, Factors Increase in R&D expenses / Amount ¥2.9 hundred million, Factors Increase in personnel-related expenses / Amount ¥1.6 hundred million, Factors Increase in outsourcing expenses / Amount ¥1.2 hundred million
Key KPIsIndicator name Orders received / Value ¥58,114 million / Year on year against the same period last year +19.8%, Indicator name Order backlog / Value ¥90,634 million / Year on year against the same period last year +33.0%, Indicator name Number of employees (at quarter-end) / Value 4,627 people / Year on year against the same period last year +5.4%
Number of employeesNumber of Employees 4,627 people / Change during the period Up 238 year on year, or 5.4% / Hiring plan Not disclosed
Assumptions Underlying the Business OutlookJudgments and assumptions based on industry trends, customer conditions and other information available at present. Numerical assumptions: Not disclosed.
Orders received and order backlogOrders received ¥58,114 million (YoY +19.8%) / Order backlog ¥90,634 million (YoY +33.0%)
New initiativesAccelerating collaboration with Dream Incubator on support for manufacturing value-chain transformation, Launch of an HR × AI organizational transformation program, Launch of minnect AI-BPR, a generative AI-powered BPR support solution for local governments, Provision and adoption of AI agent development support services, Establishment of a cross-functional consulting organization with the domestic Dentsu Group, Expansion of POSITIVE's digital salary payment functionality, Full-scale launch of VeCrea, Launch of Mendix offerings for the financial sector, Launch of D-NEXUS
Items this document does not state (12)
Progress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The main factor was the effect of higher sales. The gross profit margin also improved as a result of higher sales and improved profitability in contracted systems development and software products. Manufacturing Solutions was affected by a decline in the implementation of SAP solutions and restrained investment in the transportation equipment industry.

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Presentation Materials for the First Quarter Financial Results Briefing for the Fiscal Year Ending December 2026 | DENTSU SOKEN INC. (4812) timely disclosure | Komori